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Signs That Your Business Needs a Logistics Partner

Being able to finally start your own business is a great milestone for a few people. Especially if your business is something that you have always wanted to achieve for a very long time. It took a lot of planning to get to where you are at the moment. But, it will take a lot more time and effort to continue and thrive to find your logistics partner.

One of the most important aspects of every business is logistics. Logistics has been defined as “detailed coordination of a complex operation involving many people, facilities, or supplies.” For your business, this may mean the management of your stocks, the movement of raw materials from your suppliers to your factory, or simply the delivery of your goods to your customers. For any type of business, no matter how large or small, a proper logistics system must be in place to ensure that you are maximizing sales and not losing customers because of faulty practices.

If you are a business owner and you are wondering if it is time to look for a logistics partner, we have prepared the most common signs that will tell you if it is time to look for a logistics partner.

  1. You are using business space as a warehouse For most entrepreneurs, there should be a separate space for business operations and warehousing. Your typical office is where most of the administrative and management action takes place. While your warehouse is where you keep your inventory. But, if it already happens that your stocks are already occupying the space that you have for your business operations, then you have a problem. It might be that you no longer manage your stock level properly or your goods are not moving as fast as they should be due to some problems. Whatever the cause may be, this type of issue should be looked into as soon as possible.
  1. You have discrepancies in your inventory Your inventory refers to the goods or materials that you have in stock. These goods are counted as part of your tangible assets to effectively run your business. One of the main responsibilities of a business owner is to always check that your inventory is 100% accurate. This is crucial because your inventory is essentially your business. You have to have a clear picture of the health of your inventory at all times to be able to make sound business decisions. That is why it is a major red flag if your inventory no longer checks out. A lot of issues can cause this to happen. It might be that proper recording protocol is no longer being followed or worse, someone in your business is not reporting correct movements of your inventory. This problem if not resolved immediately can break your business.
  1. You are receiving bad reviews from customers Customer reviews are very important to your business. As most businesses shift more into e-commerce, your good online reputation and brand image are very crucial to survive the competition. If you no longer make your customers happy, then there must be something wrong with your business process. The good thing about bad reviews is that you can use them to make your business processes better. Take a look at the most common or worst comments that are being thrown at you. Evaluate properly if these comments are valid and immediately take the necessary steps to make your process better. For logistics-related concerns, you have to be very particular about reviews that tell you that their order “arrived late” or “damaged when received”. These specific types of reviews will tell you that somewhere along the way, your logistics system failed.
  1. You spend a lot of money on shipping your goods If your business is catering to customers across the whole country, you have to rely on logistics companies to transport your goods from point A to point B. This is a typical process that most business owners go through. For most, this is simply the easiest. But is it cost-efficient? Most of the time, it isn’t. Moving your goods across the whole country from a single point of origin means that you will have to incur more costs for orders that are far from you. You will either shoulder the cost of shipping or will have to pass on the cost to your customer. Either way, this is not a good solution from any business standpoint. More cost involved in shipment means that you will spend on unnecessary operating costs or your business will not be at par with your competition in terms of pricing. However you look at it, this type of issue will hurt your business in the long run.

No matter what kind of business you have, and no matter the size, you have to take all the steps necessary to make sure that you minimize expenses and maximize profit. After all, that is one of the essences of engaging in business.

Logistics is one essential part of running your business that you should never take for granted. Luckily, Soul Logistics can offer you solutions for any type of logistic needs that your business may require. If you are starting small, you do not have to worry. Our business solutions are scalable and can be adapted to the needs of your business as you grow. Talk to us today and find out how we can help.

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Why a Career in Logistics Might be Good for You

The logistics industry is one of the fastest-growing industries in the world. A lot of opportunities are being presented to individuals who wish to engage in a career that is fulfilling and something that will definitely bring good pay. For some, thinking about career in logistics might be dull. But that could not be farther from the truth. If you have the idea that knowing how to drive a prime mover would immediately qualify you for the job, then you certainly have a lot to learn about the industry. It takes a lot more than driving skills to be able to survive and thrive in this competitive field. So is this career path right for you? Read on to find out.

Skills needed to thrive in the logistics industry

Aside from the obvious requirement that you should be one of the best drivers out there who can maneuver large vehicles, you should also have the following skills and characteristics.

  1. You have to be a natural problem-solver – When you go on a trip across the country, you will spend many hours, even days on the road. During such times, a lot of problems can occur. For example, if you will have engine trouble in the middle of nowhere, you cannot just sit in the corner and wait for help. You have to try to solve a problem on your own. If you are not a natural problem solver, you will have difficulty dealing with similar situations.
  1. You should manage stress well – The logistics industry is a very unpredictable field. There could be a lot of problems that you did not anticipate that might happen anytime. Not to mention the fact that you have tight deadlines to meet and many customers to please. With all of this piling up, you can easily be distracted and fall out of focus. That is why, it is very important that if you were to become a freight driver, you should be able to manage your stress levels properly. Just like other types of jobs, you can be exposed to a lot of stressful situations on a daily basis and you should be able to navigate through that.
  1. You need to know how to think out of the box – If you are going on an interstate trip alone, driving for many hours, a lot could go wrong. That is why, it should be your second nature that you know how to think out of the box. This type of thinking has been defined as being able to think in a “creative or original way”. This means that you should not be afraid to try new ideas whose aim is to make your job and your life easier. Of course, these methods should always abide by your company policies. This type of thinking is needed so that your team can feel that they can always rely on you to deliver whenever you are on your own on the road.
  1. You have to have forward-thinking – As mentioned before, most of the time, your trips will be a one-person job. Your goal is to reduce, if not eliminate any possibility of problems that you may experience when you finally go on your trip. To do that, you must be able to think ahead. You have to anticipate any problems before they even happen. For example, you must always check that your vehicle is roadworthy before even leaving the warehouse. You must check that all the cargo is complete and that all the papers are properly signed off. These responsibilities are very important because the logistics industry is a fast-moving one, and any type of delay will cost your company and the customer a lot of money.

Qualifications needed to work in the logistics industry

Now that you are already familiar with the skills and characteristics that are needed to work in the logistics industry, let us take a look at the qualifications needed.

  1. Education – For freight truck and van drivers, most companies will not require that you have a college degree. But depending on the position that you are applying for, a degree might be needed. However, even though not always required, a degree in Business Communication, Industrial Engineering, Business Management, or Inventory Management will give you an edge. With that said, as long as you have the proper attitude and right character for the job, this career might be a good fit for you.
  1. Experience – Each company will have different requirements when it comes to experience. But, there are a lot out there who would be willing to give you a chance even if you do not have any exposure to similar roles before. However, having a logistics background would give you an advantage. Depending on the position, you might be required to have a certain number of years of experience to be considered for the job. But as mentioned earlier, many companies will accept you as long as you have the right skills and attitude. So read each job posting carefully and give it a try.

These are only some of the most common skills and characteristics that are required from you if you want to explore a career in logistics. Like all other fields, each job has its pros and cons. But you have to ask yourself and honestly answer if this field would be best for you. Evaluate yourself properly and assess your skills and character. We hope that this article has given you an idea of what to expect if you are planning to enter or shift to a logistics career.

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Are Driverless Trucks Possible?

With the advent of new technology nowadays, there are a lot of new concepts that might have only been a dream a few decades ago. The world is more connected than ever thanks to the internet. We can talk to anyone at any time we want with devices that fit in our pockets. Together, with this new era of modern technology, a lot of changes are also happening to how we transport our goods from one place to another.

In the world of logistics, a lot of things have changed in recent years. Our transport vehicles have become more reliable, durable and technologically advanced. For example, Tesla is planning to ship out its Semi trucks by 2023. A marvel of modern engineering and technology, this truck is something like no other – packed with technology and smart features.

But the question remains, are we advanced enough to be able to have driverless trucks?

The Technology

In order for autonomous driving to work, there are a lot of technologies involved. These vehicles are essentially computers with wheels. Mounted in different parts of any vehicle with autopilot capabilities are a lot of sensors. These devices measure speed, distance, and a whole lot of data that goes into the vehicle’s computer for processing. Cameras are also included for scene recognition. These devices will enable the vehicle to identify the difference between a human or a deer crossing the road. Most vehicles with autopilot capability are also able to read signs on the road so that it can guide the driver with speed limits, for example.

Radar is also an important aspect of autopilot technology for land vehicles. Using radar, the vehicle will be able to know if it is on collision with something and can safely deploy its automated braking system. One more thing that makes the whole system more incredible is artificial intelligence. That might sound a bit futuristic for a vehicle but AI makes it possible for the onboard computer in a vehicle to make or suggest certain decisions for improved safety and efficiency. Almost all data gathered from the different sensors of an autonomous vehicle will be processed using AI. These data might include images from cameras of other vehicles using the same system. This is commonly referred to as a neural network. Which basically means that it is a collection of all the data that all vehicles from the same manufacturer share in order to make its systems better.

The Challenges

The world is now pretty modern, so what makes the production of fully-autonomous trucks a reality?

There might be a lot of factors affecting the fast development for fully automated logistics vehicles. One is cost. The technology is fairly new and like all new things, it will require a lot of money to develop. Remember the days when phones were so expensive? Also, each manufacturer has their own proprietary technology, making the development more difficult and slow. We do not expect them to share best practices

with one another but this matter adds more time in the evolution of driverless technology.

Second, regulations are not easy to comply with. Since the technology is new, land transport agencies are also trying to figure out new policies that will keep motorists safe while on the road. That is why if you were to drive a car with autopilot capabilities, you are most likely to have to agree to a disclaimer. These disclaimers are safety nets for manufacturers for liabilities in case the autopilot does not work as well as expected. This means that that dream of yours to sleep while cruising through your 500-mile journey might not become a reality until the next couple of decades.

Will it be Possible?

At this time, there exist a lot of vehicles with self-driving capability. The biggest one that is known to most people might be the announcement of Tesla’s Semi that is set to be released in 2023.

The technology already exists but it might take a long time for people to fully adapt to the new idea of letting a truck go on its own ala Optimus Prime style. While there are a lot of economic advantages, especially for logistics companies, we might have to wait and see for now.

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What to Expect From the New Tesla Semi?

Tesla unveiled the new Tesla Semi during their event in their design studio at Hawthorne Airport wayback in 2017. The crowd were hyped watching the new Tesla Semi for the first time as it drove down the tarmac. The design is extremely different from typical trailer trucks. Well, it’s no longer a surprise, because Tesla has been known for making wild designs for its product line.

Tesla’s CEO Elon Musk went on to explain about the new Semi, production is expected to start in 2023.

Performance

Tesla has been known for making super cars and the new Tesla Semi is no different. The trailer can achieve 0 to 60 mph in 5 seconds, compare that with the 15 seconds that it takes for a diesel truck to achieve the same speed. The Tesla Semi is also capable of speeding uphill at 65 mph even with the maximum gross load of 80,000 pounds.

Since the Tesla Semi runs on electricity, range is a major consideration for buyers and Tesla did not disappoint. With its 500 mile range even at full load, running at highway speed, you will not worry of running out of power in the middle of the road. With 80% of routes only 250 miles long, it means that you can go to your destination and back without recharging. However, that is a worst case scenario. Tesla now offers their new mega chargers that can give the Semi a 400 miles of range in 30 minutes of charge.

The Tesla Semi does not disappoint in terms of design. It kind of reminds you of Japan’s bullet train. Tesla implemented a similar design to improve dynamics, therefore improving range and speed. The bottom of the truck is even flat to further improve air flow.

Driver Experience

Driving a Tesla Semi would not be the same as driving your typical truck. It’s basically a Tesla Supercar on steroids. The Semi is automatic, there are no gears. Musk also mentioned that the Semi is “Super easy to drive and incredibly responsive.”

Tesla Semi locates the driver seat in the middle of the cockpit. Kind of reminds you of driving a race car. Musk said that putting the driver’s seat in the middle gives the driver more visibility. The cockpit is also incredibly spacious. You can easily stand up inside.

In terms of technology, the Semi will include dual touch screens for display and control, much like Tesla cars. It is also equipped with Tesla’s smart technology that will provide more safety and navigation assistance to drivers. You would enjoy every day of driving the Tesla Semi with its large glass panes. Offering you a field of view that you will never get with conventional trucks.

Safety

Tesla always puts its best foot forward in making sure that their products are safe for the road. For the Tesla Semi, the company incorporated a lot of the safety features that they already included in their passenger vehicles.

The Tesla Semi will have a Autopilot Driver Assist that will help in watching the road for more safety. It will also include an automatic emergency braking. This system will engage on its own if it detects an obstacle or pedestrian ahead, if the driver fails to do so. The automatic lane keeping feature will make sure that the Semi will not go out of its lane. This is incredibly helpful in making sure that collision accidents will not happen. As mentioned earlier, the driver’s seat is located in the center of the cockpit. This is a safer location if collisions cannot be avoided. The battery pack of the Tesla Semi is strategically placed below the floor. This improves the trailer’s center of gravity therefore minimizing the risk for rollovers.

Reliability

Features are useless if a product is not reliable. That is why Tesla made sure the Semi will live up or exceed expectations. The Semi’s drive train is guaranteed to last 1 million miles! That is something that will make you sleep well at night if you will ever own one in the future. The Semi also has four independent motors to drive it. That means that if a worse event happens where you’ll lose two of the motors, you can still go on and be where you want to be.

With the Semi having one of the largest glass panes in any truck out there, it is important to take into consideration the integrity of the glass panels. Elon Musk assured all future owners that they are using Tesla’s Armor Glass for the Semi. It can withstand brute force and Musk even mentioned that they would be willing to give a full refund if the Armor Glass gets cracked. This is very important because a problem such as a broken windshield will cause a tremendous loss for business owners if a truck is stuck somewhere waiting for glass replacements.

Cost

Cost might be the most important thing that truck operators will consider in adding the Tesla Semi to their fleet. After all, what good does an awesome looking truck do that will break the bank?

Elon Musk assured buyers that the Tesla Semi has the lowest cost of ownership compared to any competition in the market. For comparison, a diesel truck will cost you around $1.51 per mile while the new Tesla Semi will only cost you around $1.26. That will only get better with improvements to charging technology that will further bring down the cost.

With other features that only Tesla offers such as its Tesla App that will give you remote diagnostics, predictive maintenance notification and location mapping among other useful features, the Tesla Semi is almost the best choice for logistics companies. It is cost efficient, packed with safe features and looks absolutely awesome. The Tesla Semi is good on paper, but we will have to see how it performs in the real world.

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Why Oil Price Is Rising

Why Oil Price Is Rising? Watching your fuel gauge turn red these days will surely bring you a different kind of anxiety that you would have never felt two years ago.

According to latest reports, prices of a gallon of gasoline recently hit an all-time high of $5 or more, a 50% increase from the oil price one year ago. California drivers are more pressed with the concern with the average local price of fuel at $6.4 a gallon. Add more problems on inflation and you certainly have a recipe for an economic situation that will not be beneficial for anyone.

In 2020, during the Covid-19 lockdowns, prices of gasoline went down. Will low demand brought about by lesser mobility due to movement restrictions, prices declined. But the first quarter of 2022 gave a different situation on the prices of gasoline. Something that most people are not ready to deal with.

Insufficient Supply for Increased Demand

In 2019 and 2020, the Coronavirus was rummaging through the whole planet. In order to help the health sector keep up with the daily infections, governments have to impose movement restrictions on its citizens. This limited mobility made a big change to the dynamics of oil consumption and supply.

Two years later, as the economy slowly gained its pre-pandemic traction, demand for gasoline also increased. The last quarter of 2021 recorded the average daily consumption to be the same during the pre-pandemic level. Seems like people are already starting to go out and travel a lot.

With the increased demand for gasoline steadily increasing, suppliers are not quick to adapt. Traders have not carefully anticipated the sudden surge for fuel demand and they are working round the clock to keep up. This resulted in further increase in price in order to control the demand.

Slow Response of the U.S Oil Production Industry

In 2014, the U.S operated a total of 1,609 rigs. In 2021, it was at an astounding all-time-low of only 295. Since 2015, big oil companies are showing little interest in further exploring new oil supplies. There are a lot of reasons for this.

One is the increasing demand for renewable sources of energy. More people are considering exploring the possibility of using a hybrid or a fully electric vehicle. In the U.S alone, sales for electric cars are increasing each quarter with no signs of decline.

Unstable market for oil brought about by changes in the economy as a whole also affects decision making of large oil companies. There is uncertainty to the demand level and prices are very unpredictable. Investing in search for new oil wells is not a very good business decision for them at the moment. However, oil rigs currently in operation are already at 520. This is a 76% increase from the last seven years.

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Proposal Seeks Increase in Port Diesel Fee

LONG BEACH, Calif. — San Pedro Bay ports charge $10 per container for transport that isn’t by a zero-emission truck, but an environmental group wants to combine a higher fee with incentives to accelerate adoption of cleaner trucks.

Miguel Jaller, co-director of the Sustainable Freight Research Program at the University of California-Davis Institute of Transportation Studies, said a higher fee could help fund the transition, and believes the system as configured fails to reward clean transport adequately.

“A system like this would internally support the transition without needing external money,” Jaller said during a presentation at the Metrans International Urban Freight Conference held May 25-27. Metrans, a joint partnership of the University of Southern California and California State University-Long Beach, studies how freight movement affects urban areas.

Jaller said a higher fee could help fund the transition, and believes the system as configured fails to reward clean transport adequately. (Jerry Hirsch for Transport Topics)

Jaller, and Emil Youssefzadeh, founder and chairman of Long Beach-based WattEV Inc., an electric trucking startup, say the ports alone — with a population of about 20,000 diesel trucks — could claim all the funding California has set aside to subsidize the transition to zero-emission tractors.

Electric Class 8 trucks cost around $350,000, about $225,000 more than a diesel counterpart. Writing down the cost of the estimated 20,000 trucks registered to operate at the ports to parity with diesel tractors would suck up more than $4 billion, Jaller said. And that still doesn’t account for the funds the state and the freight industry will need for other California ports and trucking, he said.

According to port officials, the $10 fee, launched this year after pandemic-related delays, will raise about $90 million annually between the Port of Los Angeles and Port of Long Beach.

Instead, Jaller proposes that the ports charge between $22 and $56 per loaded TEU, or 20-foot equivalent container. This would support a reward of about $90 per TEU transported by a zero-emission truck. The proposal suggests a gradual reward decrease to about $5 to $23 per TEU in 2035, California’s target for phasing out diesel trucks.

The charge and the reward don’t have to be parallel to work — far more money would be collected at the outset because the majority of freight still would be moved by diesel trucks. Less incentive money would be needed in later years as more trucks would be zero-emission. Moreover, the value of the rewards dips as revenue from the charges declines.

“As the time goes by, the price differential between the technologies would be lower, thus less incentives would be needed,” Jaller told Transport Topics.

Jaller and Youssefzadeh estimate such a fee and reward system would displace 6,000 diesel trucks by 2030 and 17,000 to 18,000 by 2035, reducing more than 10.3 million metric tons of CO2 emissions.

Even if passed through to consumers, the fees are just “cents on the dollar,” Jaller said. The typical shipping container passing through the port complex has a goods value of about $30,000, according to port officials.

Experts said how the ports handle this transition has broad implications for motor carriers, shippers and consumers. The complex ranks ninth globally among ports and accounts for about a third of the goods imported to the U.S., according to the Port of Los Angeles.

The ports know more money is needed to subsidize a transition, but they don’t see the Clean Truck Fund rate — the formal name of the fee — as the sole solution.

“The ports never envisioned that the CTF rate would be the only source of funding needed to pay for the truck transition. Additional support from state and federal grants, as well as from private industry, will be critical to meet our goals,” said Heather Tomley, Port of Long Beach’s managing director of planning and environmental affairs.

Chris Cannon

Cannon

The ports are being cautious with their approach, said Chris Cannon, director of environmental management for the Port of Los Angeles.

“One of the big concerns raised by the boards of harbor commissioners was that the fee would be passed on to the drivers. While it is charged to the cargo owners, there is no way for us to either see or be involved with their contractual relationship with the truckers who pick up the cargo,” Cannon said.

Setting a low starting fee allows the port to push the transition with less risk to drivers. As the ports analyze who actually pays the fee, adjustments can be made, he said.

The ports also need an approach that doesn’t send business to other U.S. facilities that aren’t pushing the same transition. High fees risk that, Cannon said.

“No one else is doing what we are doing. We are at the leading edge of the technology,” he said.

Regardless of the plan, there is some concern that the supply of zero-emission trucks available to drayage carriers will lag in the near term.

When the California Air Resources Board passed the 2020 Advanced Clean Trucks regulation, it required manufacturers to have at least 40% of their Class 7 and 8 drayage tractor sales be zero-emission vehicles by 2032, Tomley said.

“In the near term, given supply chain disruptions and a rapidly evolving technology landscape,” she said, “supply may not be sufficient to meet early demand.”

Funding remains a problem for fleets transitioning to zero-emission trucks, regardless of the current plans and proposals, said Joe Rajkovacz, director of governmental affairs and communications for the Western States Trucking Association.

He said higher fees will only chase shipping companies to use other ports.

The looming requirement that all new trucks entering port drayage ZEV’s amounts to “a grand experiment in whether government forward pushing mandates really can work and change a market. Many of us think it will be an epic failure,” Rajkovacz said. “We believe ZEV’s are the future but don’t see a meaningful bridge being built to get us there.”

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Market Growth, Mergers Adjust Logistics Sector Rankings

North America’s largest third-party logistics companies provide a range of transportation services to support the movement of freight, from domestic freight brokerage and international freight forwarding to warehousing, order fulfillment and dedicated contract carriage.

In each of these sectors of the logistics industry, many 3PLs expanded their businesses last year as they helped their customers navigate supply chain disruptions and constrained truck capacity.

Meanwhile, a series of high-profile mergers, acquisitions and spinoffs also has altered the competitive landscape for many 3PLs.

Freight Brokerage

In a strong freight market and tight capacity environment, the largest freight brokerage firms in North America were able to grow their businesses by significant margins in 2021 as they worked to solve shippers’ transportation challenges.

C.H. Robinson Worldwide eas­ily maintained is No. 1 ranking on the freight brokerage sector list with gross revenue of $14.5 billion, up from $11.3 billion a year earlier.

Total Quality Logistics, which comes in at No. 2 on the sector list, also achieved strong growth, with total revenue jumping to $7.8 billion, up from $4.1 billion.

Coyote Logistics, which is owned by UPS Inc., stands at No. 3 with $5.5 billion in revenue.

The combined operations of Worldwide Express and GlobalTranz, which merged in July 2021, rank No. 4 on the sector list with revenue of $4.6 billion.

Echo Global Logistics climbed to No. 5 on the freight brokerage list with revenue of $3.7 billion.

Next on the list are Mode ­Global and Landstar System, followed by Uber Freight, which rises to No. 8 following its November 2021 acquisition of Transplace Inc.

XPO Logistics checks in at No. 9 on the brokerage sector list. The company spun off its contract logistics business last year and more changes are coming. XPO re­cently announced plans to separate its freight brokerage and less-than-truckload operations into separate standalone companies.

Dry Storage Warehousing

Changes in consumer behavior are driving a transformation of warehousing and distribution services.

A growing number of contract logistics providers have been investing in warehouse automation and robotics to more efficiently meet the growing demand for e-commerce fulfillment and next- and same-day delivery — trends that have accelerated during the coronavirus pandemic.

The largest companies in the dry storage warehousing sector are prime examples of this shift toward greater technology adoption and automation in the warehousing environment.

DHL Supply Chain retained its top ranking in the dry storage sector with 139.6 million square feet of warehousing space.

GXO Logistics, with 90 million square feet, makes its debut at No. 2 on the sector list this year after its spinoff from XPO Logistics in August 2021.

Ryder Supply Chain Solutions is third in the dry storage sector with 80 million square feet of warehousing space.

The next-largest warehousing providers are NFI, Geodis, CJ Logistics, Kenco Logistics Services, Saddle Creek Logistics Services and FedEx Logistics.

Refrigerated Warehousing

The largest providers of cold storage warehousing, Lineage Logistics and Americold, continued to grow last year in North America and across the globe.

Lineage held onto the top ranking in the cold storage sector as it expanded to 2.5 billion cubic feet of refrigerated storage space across 400 warehouses.

Second-ranked Americold, meanwhile, has expanded its refrigerated storage space to 1.5 billion cubic feet across 250 warehouses.

Lineage has continued to extend its reach and capabilities through a steady stream of acquisitions. Those additions include its March acquisition of MTC Logistics, a cold-chain provider with locations at the ports of Baltimore; Wilmington, Del.; and Mobile, Ala.

Outside of North America, Lineage recently expanded its business in Vietnam, Australia and Europe.

At the same time, Lineage also is raising funds to support further growth and supply chain innovation. The company announced $1.7 billion in new equity earlier this year, bringing its total equity raised since January 2020 to $6 billion.

The next largest companies in the refrigerated warehousing sector are VersaCold Logistics Services, Penkse Logistics and Burris Logistics, followed by Conestoga Cold Storage, Midwest Refrigerated Services, RLS Logistics, Hanson Logistics, Confederation Freezers and FW Logistics.

Dedicated Contract Carriers

Some of the largest dedicated contract carriers in North America continued to expand their fleets in 2021 as the economic recovery fueled strong freight demand.

Top-ranked J.B. Hunt Dedi­cated Contract Services maintained its wide lead in this sector as it increased its tractor count to 11,689.

Penske Logistics, which ranks second on the sector list, also continued to expand its dedi­cated contract carriage business. The company now operates a dedicated fleet of 8,505 power units. The latest growth builds on Penske’s acquisition of dedicated carrier Black Horse Carriers in late 2020.

Ryder Supply Chain Solutions, meanwhile, checks in at No. 3 on the sector list with 5,300 tractors.

Not far behind are Werner Logistics with 5,235 power units, Knight-Swift Transportation with 4,800 and NFI with 4,600.

Rounding out the top 10 largest dedicated contract carriers are Schneider, Cardinal Logistics, U.S. Xpress and Hub Group.

Airfreight Forwarders

After facing significant challenges two years ago amid the onset of the coronavirus pandemic, the world’s largest airfreight forwarders rebounded in 2021 with strong volume growth during a time of severe global supply chain constraints.

Switzerland-based Kuehne + Nagel increased its airfreight volume to more than 2.2 million metric tons in 2021, up from 1.4 million a year earlier. That was enough to push Kuehne + Nagel past DHL Supply Chain & Global Forwarding into the top spot on the airfreight forwarding sector list.

Despite slipping to No. 2 on the list, DHL increased its airfreight volume to nearly 2.1 million metric tons, up from about 1.8 million a year earlier.

Other companies that forwarded more than 1 million metric tons of airfreight last year were DSV A/S, DB Schenker and Expeditors International of Washington.

Ocean Freight Forwarders

Despite contending with severe port congestion and other supply chain disruptions, large ocean freight forwarders generally posted modest volume gains in 2021 as global economies continued to recover from the coronavirus pandemic.

Kuehne + Nagel maintained its top ranking in the ocean freight forwarding sector with 4.61 million 20-foot-equivalent units in 2021, up from 4.53 million a year earlier.

Sinotrans Ltd. of China remained No. 2 on the list despite bucking the overall trend with a slight reduction in volume, to 3.75 million from 3.77 million TEUs.

DHL Supply Chain & Global Forwarding checks in at No. 3 with 3.14 million TEUs, followed by DSV A/S, which achieved significant growth last year with 2.9 million TEUs, up from 2.2 million the prior year.

DB Schenker, with 2.21 million TEUs, rounds out the top five on the ocean freight forwarders list.

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The Rise of the Entrepreneurial Carrier: What Shippers Need to Know

Entrepreneurial carrier is a vital part of the marketplace. The freight industry has seen a historic run of tight capacity and elevated rates, with more than 18 months without relief from rate volatility and supply gaps. In 2021 alone 56% of truckers reported challenges providing capacity — up from 29% in 2020.

In a volatile and tight market, it’s crucial for shippers and carriers to have solutions that enhance their access to freight or capacity and strengthen their operations through speed of execution. With abundant freight but a shortage of capacity to move it, drivers have seized on the opportunity and leveraged new tools to bring new carriers to market.

There was a tidal wave of new authority carriers and owner-­operators entering the market in 2021, with new registrations rising more than 300% year-over-year in May.

This pool of new authority carriers and owner-operators is newly empowered — they’re younger, tech-savvy and experienced drivers leaving large trucking companies to start their own business.

And, contrary to previous belief, these carriers are high performing and highly committed, often performing better on key metrics, such as timeliness and reliability of ­deliveries.

In 2022, we’re approaching the dawn of a new era for entrepreneurial carriers. The industry should be ready to adapt with small carriers in mind by providing systems and technologies that allow them to succeed.

Who Is the Entrepreneurial Carrier?

While access to capacity is tighter than ever, the dynamics of capacity are changing, prompting the increase of new authority carriers entering the market. After surveying and speaking with those in our marketplace, we’ve found the majority of entrepreneurial carriers are professional drivers leaving their trucking companies to start their own ­authority.

As of 2021, there are more than 600,000 owner-operators employed in the United States, and that number is ­quickly growing. The average age of employed owner-operators is 47 years old. Owner-operators’ footprints are growing ­nationwide.

These drivers are experienced, having started as com­pany drivers. They start their own carrier business because the opportunities in today’s market are abundant, and it is easier than ever to get started. Sixty percent of new authority carriers note increased pay and a more flexible work environment as key reasons for starting their own businesses, according to Uber Freight data.

With the technological revolution in freight over the past five years, motor carriers can also now download apps and start moving freight immediately, getting paid in days instead of the weeks or months that it took traditionally. I’ve personally had drivers tell me that they would never have been able to start their own carrier without the opportunities and easy access to freight that Uber Freight and other new providers offered.

How the Industry Can Embrace These Carriers

Entrepreneurial carriers are a vital part of the marketplace and a key solution to having a healthy pipeline of drivers and avoiding labor shortages. As an industry, it’s on us to make the market more attractive and sustainable for new authority carriers.

Technology can make the market well-positioned for entrepreneurial success. By providing flexibility and a level playing field for owner-operators, the industry can empower the smaller carrier.

For example, carriers should have equal access to the loads in a network, giving them the perfect foundation to jump-start their new business. Loads have upfront pricing as well, so even if a driver doesn’t take the load, they have an option and good information on rates. Compare this to the opaque pricing that the industry traditionally offered, and it’s clear upfront pricing is empowering to new ­carriers.

Systems and technology within platforms also help carriers learn how they are performing in real time, giving them access to reliability and service metrics, and advising carriers on how they can improve their standing with shippers. We find that our carriers want to improve and they want to build a successful business. The better information they have, the faster they can improve.

We’re also seeing accelerated adoption of committed capacity solutions among owner-operators and small fleets. Committed capacity provides contractual freight opportunities from shippers of all sizes, to any sized carrier — even single owner-operators — who historically would never be able to participate in large enterprise customer freight bids. The most successful carriers build their business on a base of consistent freight, but those opportunities have been historically difficult to access for most carriers.

Shippers can also help support entrepreneurial carriers, ensuring that drivers have a good driving experience and can go from point A to point B in a timely manner.

Shippers should have visibility into their facility ratings so that they can get feedback on the carrier experience. By reviewing these ratings, shippers have pinpointed improvements to facilities in their network. This is critical for ensuring that we support carriers on the road — delays, lack of access to facilities, or poor personal interactions on site can all lead to burnout and low morale for drivers.

The carrier market is shifting, and small carriers are more empowered than ever. We like to believe that we’ve had a small part in the shifting carrier market by building a more sustainable, transparent and efficient market.

If carriers are successful and satisfied in their job, shippers benefit as well by accessing more experienced drivers offering better service.

Empowered carriers are making smart decisions for a more efficient and reliable network, and we must em­power both carriers and shippers with better information, better execution and a better working environment.

Bill Driegert is the head of operations and co-founder of Uber Freight, a digital freight broker that uses a mobile app to match carriers with shippers. Uber Freight is a business unit of ride-hailing company Uber Technologies Inc.

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